Posted By Nadroj
Hello,

Can anyone help ? I'm trying to get some info on how compensation payouts are derived. A couple of years ago a wise old legal guy showed me a book which gave a basic figure for a particular injury. I understand that other factors will be taken into consideration e.g Age, loss of potential earnings etc, but would be interested if anyone has any info on how the figures are derived.

Much appreciated

Nadroj

Posted By SteveD-M
There are the Ogden tables, see the attached link.


http://www.picalculator.co.uk/ogdenviewer.aspx

Also the Actuary Department.

http://www.gad.gov.uk/Se...for_injury_and_death.asp

Posted By Phil Grace
Nadroj,
Just to add to previous comments... The insurer pays compensation payments to the injured party, the claimant and to the legal costs for their solicitor. The compensation paid consists of the following two parts:

General Damages: This is for what is known as pain suffering and loss of amenity (PSLA). This is the payment for the actual injury received. There are tables indicating a range of values for different injuries e.g. loss of sight of an eye, a fracture, disabling injuries such as loss of fingers, hand, arm etc. Note that with fingers/hands the amount paid is greater if the loss is on the dominant hand i.e. the one used for writing.

Special Damages: These comprise all the rest and can be easily remembered as being "specific" i.e. they can be calculated. Thus loss of earnings up to and after the agreement on negligence (they are calculated differently), care costs for the disabled, travel costs e.g. to hospital, modifications to house/home, provision of items such as artificial limbs, modified car, respite care if the wife provides care etc etc. All of these are calculated.
In addition there are sums for dependent children and for any care that may be provided by the spouse/partner. Awards can also be made for loss of ability to have sex or for future prospects on the job market i.e. a person with missing fingers is less likely to get a job.

This model provides an easy route to understanding the reason behind different awards for what seem to be the same injury. Two individuals who suffer the same injury can receive very different amounts.

A young man, with a non-working wife and two young children will receive far more than an older man, approaching the end of their working life with no dependant children.

I woudl suggest that the reference to the Ogden tables is somewhat of a red herring in that they are concerned with the task of "translating" payments that should be made over a period of time into a lump sum paid now. They're all to do with interest and investment income and the "future value" of a lump sum.

Hope this helps
Phil